Apple Inc. (NASDAQ:AAPL) sluggish demand for higher-end smartphones

Apple Inc. (NASDAQ:AAPL) sluggish demand for higher-end smartphones

Apple Inc. (NASDAQ:AAPL) sluggish demand for higher-end smartphones

Stocks fell sharply Monday, dragged down by reports of trouble at Apple and Facebook.

The Dow closed down 396 points and the Nasdaq tumbled 3%.

Alphabet was also down 4%. It is now down 20% from its peak in July, placing it in bear market territory.
Early in the day, stocks fell on news that Apple’s newest line of phones may not be selling as well as Apple or its investors had hoped.

Apple’s stock fell once more after the Wall Street Journal reported that Apple has cut orders for its iPhone XR, iPhone XS and iPhone XS Max.

The new iPhones, which Apple unveiled in September, cost more than previous versions. The $749 iPhone XR is the least expensive new iPhone, but it costs $50 more than last year’s cheapest model, the iPhone 8.

The iPhone XS Max can cost up to $1,449. The higher prices — without many more features — could be driving customers to keep their current phones longer or buy last year’s models.

Apple declined to comment about the Journal story or broader concerns about iPhone demand.

Shares of Apple fell 5% and have now plunged about 20% from the all-time high it hit a few months ago, when Apple (AAPL) was worth more than $1 trillion.

The stock ended a 5-day losing skid on Friday after an analyst at Morgan Stanley suggested that the supplier concerns are overdone.

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 209.69.

The projected upper bound is: 199.53.

The projected lower bound is: 170.89.

The projected closing price is: 185.21.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 30.2014. This is not an overbought or oversold reading. The last signal was a buy 1 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 33.21. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 52 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -110.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 1 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 30 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed down -7.670 at 185.860. Volume was 24% above average (neutral) and Bollinger Bands were 118% wider than normal.

Open High Low Close Volume___
190.000 190.700 184.990 185.860 41,920,872

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 197.07 215.66 193.89
Volatility: 50 43 32
Volume: 40,918,300 38,431,388 32,189,504

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

APPLE INC is currently 4.1% below its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume out of AAPL.O (mildly bearish). Our trend forecasting oscillators are currently bearish on AAPL.O and have had this outlook for the last 28 periods. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.

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